Stocker & Yale Inc. is a diversified manufacturing company engaged primarily in the production of specialized illumination and photonics products for measuring and inspection equipment in the microscopy machine vision and telecommunications component manufacturing markets. In addition the company manufactures machine tool components and accessories for the automotive and related industries. The company operates in a company-owned facility in Salem New Hampshire and in three leased spaces in Roseville Michigan Singapore and Saint-Laurent Quebec. StockerYale Inc. has a market cap of $3.71 million; its shares were traded at around $0.13 with and P/S ratio of 0.12. StockerYale Inc. had an annual average earning growth of 0.4% over the past 10 years.
Highlight of Business Operations:Net sales were $6.3 million for the three months ended March 31, 2009, a 22% decrease versus $8.1 million for the first quarter of 2008. The decrease in sales was mainly due to a $1.2 million decrease in the Photonic Products segment, of which $0.5 million was due to the impact of foreign currency exchange, and on lower laser segment sales of approximately $0.5 million. Optical sales, including specialty optical fiber and fiber assemblies, increased 6% to $1.0 million.
Operating expenses totaled $3.3 million for the first quarter of 2009, decreasing 17% versus $4.0 million in the first quarter of 2008. The decrease in operating expenses over the first quarter of 2008 was primarily due to the cost savings programs, including headcount and salary reductions as well as a favorable impact of $0.5 million in foreign currency exchange rates. Non-cash amortization of intangible assets decreased to $196,000 versus $330,000 for the first quarter of 2008. Sales and marketing expenses decreased by approximately $340,000, or 30%, partially due to the favorable changes in the foreign currency exchange of approximately $200,000, but also due to the cost savings programs, including headcount and salary reductions. Research and development expenses were slightly lower by $34,000 at $726,000. General and administrative expense decreased 11%, or $186,000, due to cost savings programs, including headcount and salary reductions.
Operating loss was $0.9 million compared with operating losses of $1.5 million for the first quarter of 2008. Operating losses were favorably impacted by cost savings programs, including headcount and salary reductions as well as foreign currency exchange gains of approximately $900,000 on a year-over-year basis.
Net loss including discontinued operations was $1.6 million or $0.04 per share. This compares to net loss of $2.2 million or $0.06 per share for the first quarter of 2008.
Our cash balance decreased to $1.1 million at March 31, 2009 from $1.6 million at December 31, 2008 primarily as a result of the principal and interest payments and payments against revolving lines of credit. During the first quarter ended, March 31, 2009, our overall borrowings decreased by approximately $0.4 million.
Capital spending for the quarter ending March 31, 2009 was $30,000. The Company has no material contingent capital expenditure commitments as of March 31, 2009 but has plans to purchase approximately $455,000 of capital items between April 1, 2009 and December 31, 2009, of which we expect approximately $70,000 to be financed through capital leases.
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